Oil extended its retreat after taking a double blow, with the OPEC+ alliance said to be poised to agree a production increase on Thursday just as U.S. stockpiles were seen expanding by the most this year.
West Texas Intermediate declined for a fourth straight day in early Asian trading, after Brent closed on Tuesday at the lowest level since mid-February. The widespread view among the producer group is that the global market can absorb additional barrels, according to people familiar with the matter.
While oil’s powerful rally is facing a setback as investors and traders adjust to prospects for increased production, WTI remains 22% higher this year. Prices have been supported by the OPEC+ cuts and the vaccine-aided global recovery. However, the producer alliance could return the bulk of the 1.5 million barrel-a-day output hike that’s up for debate this week.
PRICES:
- West Texas Intermediate for April delivery traded 0.7% lower at $59.36 a barrel at 7:27 a.m. in Singapore.
- Should the U.S. benchmark end lower for a fourth day that would be the longest losing run since September.
- Brent for May settlement fell 1.6% to $62.70 a barrel on Tuesday.
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